What is the difference between a REMIC and a CMO?
What will be an ideal response?
All three entities (Ginnie Mae, Fannie Mae, and Freddie Mac) that issue agency pass-through securities also issue CMOs, with Ginnie Mae being a late entry into the market, issuing its first CMO in 1994 . The CMOs are not referred to not as CMOs by these issuers. They are referred to as REMICs or REMIC structures. REMIC means Real Estate Mortgage Investment Conduit and is a provision in the Tax Reform Act of 1986 . This provision in the tax law allows the efficient creation of a CMO structure. Consequently, issuers, both agency and nonagency issuers, structure their CMO deals so as to qualify for REMIC tax treatment. Rather than referring to this multiclass mortgage structure as a CMO, the preference is to refer to it as a REMIC.
You might also like to view...
Alexis has enlisted the help of Professor Spacely to convince a couple of her classmates that the Earth is actually more round in shape that flat. She believes that the professor has the power to make a convincing argument, based on his position as Professor of Astronomy at her college. What type of power is Alexis counting on Professor Spacely to use in making his argument?
A. referent power B. coercive power C. legitimate power D. expert power
Which of the following is a primary customer-based metric?
A) market share B) sales volume C) return on investment D) lifetime duration
The outer ring in the network of relationships for project managers includes all of the following EXCEPT
A. Customers. B. Government agencies. C. Administrative support. D. Other organizations. E. Contractors.
Talk to the audience not just with words but with your______.
Fill in the blank(s) with the appropriate word(s).